By Sandra Kenneth
Scrap metal dealers across Nigeria have threatened a nationwide supply shutdown to iron and steel companies, protesting unannounced price reductions and industry irregularities.
Under the auspices of the National Association of Scrap and Waste Dealers Employers of Nigeria (NASWDEN), the group announced that the industrial action will commence on October 1 and run until October 15, 2026, with the possibility of an indefinite extension if their grievances remain unresolved.
The directive was issued in Kano by NASWDEN Deputy National President, Aminu Hassan Soja, on behalf of National President Abdulfatah Ogunwale.
Soja explained that abrupt price reductions by major steel manufacturers force dealers into severe losses after purchasing and transporting materials at higher rates. According to the association, a dealer can lose between ₦3 million and ₦6 million on a single truckload due to sudden purchase price cuts.
“The incessant and deliberate reduction in the prices of scrap metals without adequate prior notice has placed considerable financial pressure on our members,” Soja stated.
Beyond pricing, NASWDEN highlighted several key operational challenges troubling the sector:
Unauthorised Deductions: Companies routinely deduct between 1% and 5% from transaction values under the guise of “extra dust,” imposing an extra financial burden on sellers.
Foreign Encroachment: Increased involvement of foreign operators establishing local dumpsites and collection yards is squeezing out indigenous scrap dealers.
Unregulated Purchasing: Certain steel manufacturers purchase materials from unverified or unregistered agents, creating loopholes that could encourage the trading of vandalised public and private infrastructure.
NASWDEN urged regulatory bodies and government agencies to step in, standardise operations, and ensure that raw materials supplied to the steel sector originate from verified, legitimate channels.
While calling on members to strictly comply with the October 1 deadline, Ogunwale stressed that the protest must remain peaceful and free of violence or property destruction as the association seeks a negotiated settlement with steel producers.
